How will smartwatches affect luxury?

4 THINGS YOU NEED TO KNOW

ABOUT THE

SMARTWATCHINDUSTRY

© Digital Luxury Group June 2015

1. Market value

© Digital Luxury Group 2


Global watch market

$42billion

¹ www.smartwatchgroup.com/smartwatch-industry-fall-2014/

Market value estimation in 2014

Global smartwatch market

$1.3

billion¹

“In 2018, the global smartwatch industry willsurpass the size of the conventionalwatch industry.”

Pascal Koenig, managing director of the

Smartwatch Group 2

© Digital Luxury Group 42 www.smartwatchgroup.com/smartwatch-industry-fall-2014/

x 139%

every yearGlobal smartwatch

market


$42billion

¹ www.smartwatchgroup.com/smartwatch-industry-fall-2014/

The smartwatch market value would need to more than double each year from 2015 to 2018,

if it was to surpass the conventional watch industry.

$1.3

billion¹

“[The Apple Watch] is entirely complementaryto the classic watch, and is another way to getinformation, but it doesn’t have the same value:when you look at the time on a smartphone orconnected watch, they don’t inform you of thepreciousness of passing time.”

Stanislas de Quercize,

CEO, Cartier 3

© Digital Luxury Group 63 www.luxurysociety.com/news/47132

2. Markets


US, China and UK top consumer interest for smartwatches


Online searches made on search engines and measured by DLG DemandTrackerTM from January 2014 – March 2015

“Consumer interest for smartwatches picked upfollowing September 2014, the month of theannouncement of the Apple Watch. This trendwas seen in the top six countries in terms ofinterest for smartwatches: the United States,China, the United Kingdom, Germany, Spainand Italy.”Ines Lazaro,

Marketing Manager, Digital Luxury Group

© Digital Luxury Group 93 www.luxurysociety.com/news/47132

3. Prices


“The Apple Watch Edition collection (starting at$10,000) is an attempt to convey the image ofApple as a true luxury brand but the businessreality is different. We anticipate Apple togenerate 80% of their sales with Apple Watchespriced under $700, a segment that will havemore impact on American and Japanesewatchmakers than on Swiss ones.”

David Sadigh, Founder & CEO

at Digital Luxury Group


Apple Watch Edition

3xmore expensive

than luxury brand

alternatives


“I think a mechanical watch is still a mechanicalwatch. It’s something that people collect and itwill outlast generations, because in 50 years,100 years, wind it and it will work. Whereas,maybe an Apple Watch, because it lacks thesefunctions is not something our consumers arelikely to collect.”

Caroline Scheufele,

Co-President & Artistic Director, Chopard 4

© Digital Luxury Group 134 www.luxurysociety.com/articles/2015/05/in-conversation-with-caroline-scheufele-co-president-chopard

4. Smart Luxury


Luxury brands with a sports heritage are most associated with smartwatches


Online searches made on search engines for ‘Brand X + ‘smartwatch’. Measured by DLG DemandTrackerTM from March 2014 – March 2015

“While Rolex has not announced the launch of asmartwatch, consumers are searching for ittremendously. ‘Rolex smartwatch’ is the secondmost searched query, right after ‘TAG Heuersmartwatch’. A Rolex smartwatch is searchedmore than a smartwatch by any other luxurywatch brand, with the exception of TAG Heuer.”

David Sadigh, Founder & CEO

at Digital Luxury Group


The Leading Market Research in the Luxury Watchmaking Industry

Since 2004

http://www.worldwatchreport.com/smartwatches/


Clients of the WorldWatchReport™ 2015 receive these smartwatch insights on a

regular basis as part of their subscription.

The leading luxury watch market research since 2004, the WorldWatchReport™ tracks

and analyses the desirability of brands across the world. Based on unbiased

information on consumer interest derived from billions of online searches on the

world’s top search engines, the report analyses 62 luxury watch brands and over 11,000

models to give brands visibility of their performance against their competitors.

http://www.worldwatchreport.com/


TO READ THE FULL SMARTWATCH FEATURE

CLICK HERE


Bespoke digital marketing and

communication services for forward-thinking

luxury brands.

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retailers, and leading financial institutions to track and

analyze the evolution of the luxury industry.

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